SASE:4006

Stock Analysis Report

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Market Cap

ر.س1.7b

Last Updated

2021/07/30 14:03 UTC

Data Sources

Company Financials +

Executive Summary

Saudi Marketing Company engages in the retail, trading, and importing business in Saudi Arabia. More Details


Snowflake Analysis

Proven track record with moderate growth potential.


Similar Companies

Share Price & News

How has Saudi Marketing's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 4006 is not significantly more volatile than the rest of SA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: 4006's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

4006

-0.3%

SA Consumer Retailing

0.3%

SA Market


1 Year Return

51.9%

4006

-0.2%

SA Consumer Retailing

14.8%

SA Market

Return vs Industry: 4006 exceeded the SA Consumer Retailing industry which returned -0.2% over the past year.

Return vs Market: 4006 exceeded the SA Market which returned 14.8% over the past year.


Shareholder returns

4006IndustryMarket
7 Day1.1%-0.3%0.3%
30 Day-3.2%-2.6%-1.1%
90 Day0.3%-1.7%0.02%
1 Year51.9%51.9%1.6%-0.2%19.2%14.8%
3 Year87.4%87.4%10.4%4.5%42.2%29.2%
5 Year15.2%8.0%30.2%18.0%104.7%74.0%

Long-Term Price Volatility Vs. Market

How volatile is Saudi Marketing's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Saudi Marketing undervalued compared to its fair value and its price relative to the market?

49.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 4006 (SAR38.05) is trading above our estimate of fair value (SAR20.76)

Significantly Below Fair Value: 4006 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 4006 is poor value based on its PE Ratio (49.1x) compared to the Asian Consumer Retailing industry average (17.7x).

PE vs Market: 4006 is poor value based on its PE Ratio (49.1x) compared to the SA market (33.9x).


Price to Earnings Growth Ratio

PEG Ratio: 4006 is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: 4006 is overvalued based on its PB Ratio (2.8x) compared to the XA Consumer Retailing industry average (1.5x).


Future Growth

How is Saudi Marketing forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4006's forecast earnings growth (18.3% per year) is above the savings rate (8.8%).

Earnings vs Market: 4006's earnings (18.3% per year) are forecast to grow faster than the SA market (6.8% per year).

High Growth Earnings: 4006's earnings are forecast to grow, but not significantly.

Revenue vs Market: 4006's revenue (3.7% per year) is forecast to grow faster than the SA market (3.3% per year).

High Growth Revenue: 4006's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4006's Return on Equity is forecast to be low in 3 years time (7.2%).


Past Performance

How has Saudi Marketing performed over the past 5 years?

-36.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4006 has high quality earnings.

Growing Profit Margin: 4006's current net profit margins (1.9%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: 4006's earnings have declined by 36.6% per year over the past 5 years.

Accelerating Growth: 4006's earnings growth over the past year (66.4%) exceeds its 5-year average (-36.6% per year).

Earnings vs Industry: 4006 earnings growth over the past year (66.4%) exceeded the Consumer Retailing industry 15.7%.


Return on Equity

High ROE: 4006's Return on Equity (5.6%) is considered low.


Financial Health

How is Saudi Marketing's financial position?


Financial Position Analysis

Short Term Liabilities: 4006's short term assets (SAR965.7M) exceed its short term liabilities (SAR932.7M).

Long Term Liabilities: 4006's short term assets (SAR965.7M) exceed its long term liabilities (SAR765.4M).


Debt to Equity History and Analysis

Debt Level: 4006's debt to equity ratio (83%) is considered high.

Reducing Debt: 4006's debt to equity ratio has increased from 69.7% to 83% over the past 5 years.

Debt Coverage: 4006's debt is well covered by operating cash flow (27.9%).

Interest Coverage: 4006's interest payments on its debt are not well covered by EBIT (1.3x coverage).


Balance Sheet


Dividend

What is Saudi Marketing current dividend yield, its reliability and sustainability?

1.40%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 4006's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 4006's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 4006's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 4006's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: 4006 is not paying a notable dividend for the SA market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 4006's dividend in 3 years as they are not forecast to pay a notable one for the SA market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.5yrs

Average management tenure


CEO

Maher Al Aswad (49 yo)

9.08yrs

Tenure

Mr. Maher Hazem Fayez Al Aswad has been Chief Executive Officer and Managing Director at Saudi Marketing Company Limited since June 4, 2012 and serves as its Executive Director.


Leadership Team

Experienced Management: 4006's management team is seasoned and experienced (12.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Saudi Marketing Company's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Saudi Marketing Company
  • Ticker: 4006
  • Exchange: SASE
  • Founded: 1978
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Market Cap: ر.س1.712b
  • Shares outstanding: 45.00m
  • Website: https://www.farm.com.sa

Location

  • Saudi Marketing Company
  • PO Box 4605
  • Dammam
  • 31412
  • Saudi Arabia

Listings


Biography

Saudi Marketing Company engages in the retail, trading, and importing business in Saudi Arabia. It operates in three segments: Retail, Household, and Entertainment Service. The company is involved in the w...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/30 14:03
End of Day Share Price2021/07/29 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.